IMF praises reforms

The IMF has praised Mozambique for managing economic policy and reforms, despite the economic damage inflicted by floods last year. In its annual assessment of Mozambique’s economy, the IMF said Mozambique had a “generally good record of policy implementation, despite the devastating floods at the beginning of the year”.

However, the IMF said economic growth had slowed and inflation had accelerated. Gross domestic product (GDP) growth fell to about 3.8 percent in 2000, from 7.3 percent in 1999. The IMF said the economy was expected to grow by 10.4 percent during 2001. “In order to establish the conditions for economic recovery and equitable growth, special emphasis will need to be placed on budget management, prudent monetary and credit policy, and structural reforms,” the IMF said. The IMF cautioned that the government had to improve its management of social spending aimed at cutting poverty.